890F.796/12–2245: Telegram

The Minister in Saudi Arabia ( Eddy ) to the Secretary of State

424. ReDepts 370, Dec. 20.58 I am familiar with all details of TWA negotiations with Saudi Govt. General Wilson and party are here in Jidda now.

I can assure Dept that reports that TWA is seeking monopoly charter are wholly without foundation. Estimates on passenger and cargo services TWA is submitting at Saudi Govt request do not suggest the slightest tinge of monopoly. On the contrary all facilities contemplated would be open to any and all airplanes operating in Saudi Arabia. TWA has proposed to assist in establishing a Saudi Arabian airline to be owned jointly by Saudi Govt and TWA to operate 2 weekly round trips Dhahran, Riyadh, Jidda, Cairo with 2 more planes available for special contract services for Saudi Govt. No exclusive terms are included.

[Page 988]

Possibly rumor derived from request of Saudi Govt that TWA estimate cost of gigantic freight haul of 50 thousand tons annually from both coasts to Riyadh to replace motor transport in moving food imports. Reluctantly and under pressure TWA furnished estimates which only proved the exorbitant cost of air freight on such a scale which TWA has no desire to undertake.

Dhahran airport construction or management has not even been mentioned by TWA in their conferences with Saudi Govt (Dept’s 37259 and 373, Dec 21) and they are taking no part in discussions on these subjects General Giles and I are conducting. No connection between the TWA and the Dhahran Airport negotiations has been made or will be made here.

Sent to Dept; repeated to London.

Eddy
  1. Same as telegram 10978, 10 p.m., to London; see footnote 54, p. 983.
  2. Not printed.